The Hospitality business has one of the highest rates of bankruptcy of any industry in today’s economy. This is coupled with one of the lowest profit margins available to the entrepreneur. Restaurants that fail are usually undercapitalized, lack relevant experience in the food service industry or don’t take the time to properly examine the business which they are about to get into. Many entrepreneurs who wish to be in the food service industry turn to franchising as an option. Under the auspices of a franchisor the entrepreneur’s lack of relevant experience can be minimized if the franchisor has suitable operations systems, standard recipes and marketing techniques, etc…
However, food service franchisees and franchisors who have not conducted adequate planning and preparation have been known to go bankrupt or work on a marginal basis as well.
The only way an entrepreneur, whether they are building and creating their own business or buying a franchise unit, can clearly understand what lies ahead financially is to conduct a detailed business plan. If you have the fortitude to develop a business plan and to honestly interpret the outcomes, you will have a far best understanding of your opportunity to succeed as an independent operator or franchisee. In addition, if you can successfully get through the grueling task of developing a business plan, you will likely succeed in the business business.
A business plan should consist of nine phases:
- Concept Overview
- Economic Overview
- Site Analysis
- Competitive Analysis
- Marketing Plan
- Capital Expenditures
- Financial Projections
- Proposed Menus
- Management Biographies
The business plan provides an entrepreneur the opportunity to think through an entire business concept, location and provides an opportunity to examine the market in detail. In many cases, an entrepreneur may well walk away from the proposed operation. In other cases, the soon to be restaurateur will have a clear understanding of how they are going to make significant financial returns given the potential guest base and competitive forces.
SHG© will build a business plan for you based solely on your unique vision and needs, so that you have the plan to begin achieving your success. Or if you already have a plan in development or even completed, we will Coach you on refining it to ensure its success in gaining you the resources needed to see your plan become a reality.